AMAT
Applied Materials
$640.18
▲ 3.7%Updated Today 7:15 PM ET
▲ Up 257.0% over the last 12 months
Market Cap
$489.96B
P/E
58.54x
Forward P/E (est.)
45.16x
ROE
39.8%
Revenue Growth
3.3%
EPS Growth
29.6%
Profit Margin
29.3%
FCF Yield
1.5%
Debt / Equity
0.32x
ROIC
22.0%
Interest Coverage
34.83x
Current Ratio
2.51x
Dividend Yield
0.4%
Implied Growth (rev. DCF)
7.7%
Rating Score
64/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AMAT's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AMAT trades near $640.18, above its 50-day average ($445.67) and 200-day average ($317.82). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 77 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AMAT's is $39.73 (~6.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AMAT found buyers near $421.61 (support) and sellers near $638.90 (resistance); its 52-week range is $154.47–$638.90. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.8× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Applied Materials (AMAT) is a mega-cap company in the Semiconductor Materials & Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $489.96B.
In its latest reported year it generated about $28.37B in revenue and $7.00B in net profit.
Our model rates AMAT Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
5.3%
Revenue moved from $23.06B in 2021 to $28.37B in 2025, a 5.3% compound annual growth rate. The most recent year was roughly flat (3.3%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
48.7%
Operating Margin
29.2%
Net Margin
24.7%
ROE
39.8%
Applied Materials keeps about 29.3% of each sales dollar as net profit, with a 48.7% gross margin and 29.2% operating margin. Return on equity is 39.8% and return on invested capital about 22.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$5.45B
Net Debt
-$853.00M
Net cash position
Net Debt / EBITDA
-0.1x
Debt / Equity
0.32x
Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 34.8x, with a current ratio of 2.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $5.45B of total debt against $6.30B of cash.
Operating CF
$7.96B
Free Cash Flow
$5.70B
FCF Margin
20.1%
In the latest year Applied Materials produced about $7.96B of operating cash flow and $5.70B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
58.54x
P/S
16.17x
P/B
9.8x
EV / EBITDA
51.56x
AMAT trades at 58.5x trailing earnings (about 45.2x on estimated forward earnings), 16.2x sales, and 9.8x book value. Reverse-engineering today's price implies the market expects roughly 7.7% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How AMAT stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), AMAT ranks #27 of 72 by our overall rating. It trades at a premium versus the sector on earnings (58.5x P/E vs. 35.6x median) with a higher return on equity (39.8% vs. 25.6%) and slower revenue growth (3.3% vs. 17.4%).
P/E vs sector
58.5x
median 35.6x
ROE vs sector
39.8%
median 25.6%
Growth vs sector
3.3%
median 17.4%
Sector rank
#27
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$362.43 – $610.95
vs. $640.18 today · expected CAGR -11% – -1%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $29.22B | $30.10B | $31.00B | $31.93B | $32.89B |
| Net income | $7.30B | $7.52B | $7.75B | $7.98B | $8.22B |
| EPS | $9.20 | $9.48 | $9.76 | $10.05 | $10.36 |
| Share price (low) | $322.01 | $331.68 | $341.63 | $351.87 | $362.43 |
| Share price (high) | $542.82 | $559.11 | $575.88 | $593.16 | $610.95 |
| CAGR (low–high) | -50% / -15% | -28% / -7% | -19% / -3% | -14% / -2% | -11% / -1% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AMAT:
- High net margins (29.3%) point to pricing power or efficiency.
- Strong return on equity (39.8%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.3x) lowers risk.
- Our model's overall read is Favorable (64/100).
The case against AMAT:
- A rich 58.5x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 58.5x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Applied Materials is a mega-cap information technology business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 58.5x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.